Debtor
See mortgagor.
Frequently Asked Questions about the Term “Debtor” in Commercial Real Estate
What is a debtor in commercial real estate?
In commercial real estate, a “debtor” refers to the party who has borrowed funds and is responsible for repaying a loan. This is typically the same as the mortgagor—the borrower who pledges property as collateral for a mortgage loan.
Is a debtor the same as a mortgagor?
Yes. In real estate finance terminology, “debtor” and “mortgagor” are used interchangeably. The mortgagor is the party that takes out the mortgage loan and owes repayment to the lender.
What obligations does a debtor have?
A debtor is obligated to repay the borrowed amount under the agreed loan terms, including making timely payments of principal and interest, and complying with any covenants in the loan agreement.
Can a debtor lose their property?
Yes. If the debtor defaults on the loan terms, the lender has the legal right to foreclose on the property used as collateral, potentially resulting in the loss of the asset.
Where can I learn more about this term?
See the term “mortgagor” in this glossary for more detailed information. You can also download the complete CRE Glossary in eBook (PDF) format for offline reference.
Click here to get this CRE Glossary in an eBook (PDF) format.